A Pitch to the Rich

VW's growth engine has stalled in the U.S., partly because of poor quality. Will its pricey new cars fuel a revival?

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None of that will fix a basic Touareg glitch: that strange name. After dealers heard it in 2002, some begged VW for a change of name, fearing that U.S. customers wouldn't have a clue about how to pronounce it. VW has tacitly admitted that they were right. Some of the first TV ads for the Touareg parody the pronunciation (which, for the record, is tour-egg). VW says Americans had difficulty pronouncing Passat when it launched. (Never mind fahrvergnugen.) But that doesn't dispel the sense that VW's marketing department is in triage mode. VW named the Touareg for a rugged tribe of African nomads. But it turns out that the tribe held and traded slaves until the 20th century--a poor association for a company that used slave labor during World War II. Last summer Pischetsrieder's worldwide sales and marketing chief Robert Buchelhofer resigned under pressure and was replaced with several executives who each command one brand.

Will such moves be enough to lure back customers like Jetta owner Ann Jones? A few weeks ago, she became fed up with her car and traded it in for a new Honda Accord. It's a testament to VW that she did so grudgingly. "I will miss the Volkswagen style, and I was saddened to leave my Jetta," she says. But her Accord provides her with something her Jetta never did: "I have more peace of mind." --With reporting by Joseph R. Szczesny/Detroit and Steve Zwick/Frankfurt

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